Talking Points:
• The S&P 500 is at a record high as we count down to the market-favorite NFPs
• Dollar, yen cross and equity traders are all waiting to see if risk trends or yield forecasts will change
• Despite a hold on interest rates, a warmer reflection on stimulus options sent the Euro lower
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Our focus will change from one key event to another. This past session, the ECB rate decision weighed the euro. Ahead, Dollar and 'risk' traders wait to see if the March NFPs will stir volatility (use this app to put event risk on your charts). The European policy outcome - status quo but setting a countdown for more stimulus - and currency impact prove the markets are paying attention to the bigger picture. That sets up a tense situation for the upcoming US employment report. We have an extended (potentially over-extended) run on global equities and yen crosses that exposes a 'risk' sensitivity. Furthermore, interest rate expectations can skew the dollar and sentiment influence. We discuss these two events and their market impact in today's Trading Video.
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